Question 4 Sophia Inc. manufactures pens. The following shows the budgeted and actual contribution margin statement for one of Sophia's product lines - Alexa Sophia Inc. Budgeted and actual contribution income statement for year ended 31 March 2017 (in '000s Budget Actual Unit sales Sales revenue Variable expenses Contribution margin Fixed expenses 250 $1,900 260 $2,015 $1,140$1,185.6 $829.4 $760 Manufacturing Marketing Administration $153 $200 $95 $312 $140 $190 $90 $409.4 Income before taxes Required: For each variance computed, please indicate if it is favourable (F) or unfavourable (U) (a) Compute the sales volume variance for Alexa (3 marks) (b) Compute the sales price variance for Alexa (3 marks) (c)Provide a reconciliation that explains the sources of difference between the actual contribution margin and budgeted contribution margin. (Hint: Start by listing (9 marks) (Total: 15 marks) variances that explain the difference)